Ringgit opens lower against US dollar

Kuala Lumpur – The ringgit opened lower against the US dollar today on weak demand following the release of the country’s Consumer Price Index (CPI), the highest in eight years.

At 9.05am, the local note stood at 4.4015/4045 against the greenback from 4.3985/3015 registered at 6pm yesterday.

The Department of Statistics yesterday announced that the CPI, a measure of inflation, rose by 5.1 per cent in March 2017 to 119.6, owing to the low base last year and higher fuel retail prices compared to March 2016.

However, a dealer said, the ringgit could still gain against the greenback later today following the release of weak US housing data.

“This unfavourable data suggested a weaker economic growth for the United States in the first quarter and will diminish prospects of a Federal Reserve interest rate increase in June,” he said.

Meanwhile, the ringgit was traded mostly lower against major currencies, except against the British pound, whereby it rose to 5.6251/6303 from 5.6424/6489, yesterday.

The local note fell against the Singapore dollar to 3.1469/1497 from 3.1465/1505 yesterday.

It was lower against the yen at 4.0407/0438 from 4.0372/0403 yesterday and weakened against the euro to 4.7162/7199 from 4.7152/7197 previously. — Bernama